Huobi Global Launches Token Sale Platform Following the Success of Binance Launchpad
After the success of Binance Launchpad, Huobi has built its own platform for early access to tokens.
Huobi Global plans to offer its own platform to sell vetted tokens, the exchange announced on social media. With this move, the market operator will compete with Binance Launchpad in organizing flash token sales.
The idea to pre-screen projects and offer small-scale token sales follows a bumper year for ICO projects. Unfortunately, multiple projects turned out to be outright scams. Others managed to draw in significant funding in Ethereum (ETH), only to see their runway money dwindle during the bear market.
Pre-vetted token sales ensure that the project will only distribute a limited amount of tokens. Huobi Prime, as the platform will be called, will grant earlier access to the tokens, before they appear on major exchanges.
The proposition of Huobi arrives at a time when ICO sales are picking up tentatively, after bottoming out in February with just $22 million raised. As of March 21, the monthly total so far for token sales is above $38 million, showing a revived interest in token-based projects.
Ahead of Huobi, Binance Launchpad has already sold the tokens of three projects - BitTorrent Token (BTT), Fetch.AI (FET), and Celer Network (CELR). Usually, the token sales involve Binance Coin (BNB), and are capped to a relatively small investment. Token sale platforms also manage to restrict the sales for some markets,
Following the news of the platform launch, Huobi Token (HT) picked up the pace. The asset appreciated by 6.37% in the past 24 hours, extending its 46% weekly rally. HT traded at $2.65 as of 12:30 UTC on Thursday. The asset grew by more than 100% in March, as altcoins and tokens accelerated their gains.
The Huobi exchange, based in Singapore, is one of the most active markets. The operator is also one of the biggest Tether (USDT) holders, with more than 279 million tokens. Users have also noted significant inflows of USDT between Huobi and Binance. The Huobi Global exchange has more than $630 million’s equivalent in trading volumes each 24 hours.